Online retail sales fall due to Women’s Euro win and summer heat wave

Online retail sales have fallen due to the Women’s Euro win and summer heat wave, according to the latest IMRG Capgemini Online Retail Index.

The results show that while this is a continuation of the negative growth that has been consistent across 2022, it was building on a relatively mild decline of -5.4% in July 2021.

Three of the four weeks in July saw negative growth, week commencing 10 July – the week leading up to the hottest day – was up +5.8% YoY.

Electrical, clothing and garden were the leading categories as consumers purchased fans, summer clothing and garden furniture.

“The heatwave made it more difficult to trace any uplifts directly attributable to the success of the Euros tournament, as electricals, beers, wines and spirits and clothing would be the main categories that could see a spike,” the release read.

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IMRG strategy and insight director Andy Mulcahy said: “It seems remarkable that it took the hottest day in British history and England actually winning a football tournament to produce only slightly negative growth – it does make you wonder what would need to happen for it to be positive.

“Black Friday / peak season trading looks like it might be very difficult this year, given the Bank of England has increased interest rates and inflation is expected to reach 13% by then.

“In April, the energy cap went up and people saw the NIC rise in their pay packets, consequently sales in the first week of May fell through the floor. It seems likely the next energy cap rise in October will do something similar to the start of peak trading.”

Capgemini commerce senior manager Simon Binge added: “As the pressure on their spend continues to mount, consumers are having to make tough choices with regards to their purchasing behaviour, and the July data suggests that seeking value for money is more important than ever.

“The growth in order volumes (+26.1%) of premium footwear retailers combined with lower basket values implies consumers are seeking value through quality, albeit in more affordable options or during promotional discounts. Whereas in an adjacent category – womenswear – the growth of budget retailers (+9.6%) and the decline of premium retailers (-6.4%) supports the trend that consumers are willing to switch brands in the pursuit of value.”

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